Anavex Life Sciences Corp (AVXL)

[ignatiusrielly35]

You are correct. But the algo trading I was referring to is different than HFT-front running, i.e., flash trading. Front running mainly involves an advantage in data speed and processing speed. It doesn’t add up to much of a difference to individual trades but it is significant in the aggregate.

The algos I am referring to figure out how to achieve a desired result: move the stock up or down, accumulate or distribute, etc. It relies significantly on collusion. Creating micro-trends that add up to macro trends. They take turns trading shares back and forth to each other to create the illusion of real trading when in reality it is not. Imagine if you and I could trade the same 100 shares back and forth to each other all day long at incrementally lower prices. The net cost to either of us is negligible but the appearance …